Zoom Bets on AI with $14.7 Billion Deal to Acquire Five9
- The ubiquitous videoconferencing app hopes to close early 2022
- Zoom is riding an eye-popping stock rally to bankroll the deal
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Zoom Video Communications Inc., whose online conferencing services took off during the Covid-19 pandemic, agreed to acquire Five9 Inc. for $14.7 billion, using its surging stock to expand into an adjacent market that could bolster revenue as lockdowns end.
The value of the all-stock offer is $200.18 a share based on the closing price for Zoom’s common stock on Friday, compared with Five9’s $177.60 price on Friday, the companies said a statement Sunday. The target firm will become an operating unit of Zoom after the deal, which is subject to shareholder approval and slated to close in the first half of 2022.